CNX-NIFTY
Open—17242.75--High—17315.30—Low—17149.20---Close-17171.95
on 22.4.2022.
Support:17043/17003.90/16891.70/16836.80/16824.70/16815.90/16809.61/16782.40/16410.20/16376.05/16203.25/16162.55/15962---15914/15671.45/15578/15513/15450.90.
Resistance: -17216/17326/17354.05/17387.15/17452.90/17559/17600/17613/17639/17704/17795/17948/18018/18152/18210/18350/18604.45/18862/19402/19725/20390/20417.
(Bold and underlined
figures are most important)
The week under review from 18.4.2020—22.4.2022
was very volatile and it bounced
back from the expected range of 16900---16700(see
my last post) but finally it closed well below its critical points of 17560---17464.75---17436.90---17387.15---17354.05,
which shows gross weakness in it, furthermore it has penetrated its long term
moving averages range of 17465---16725 also but still holding on to the
lower end of it, if it manages to hold this range then it may still stage a bounce back but it will gain strength
only if it move above 17465 & 17560 and sustain on the
closing basis. Similarly sustained break below 16725 on the closing
basis could put the long term uptrend in potential danger and may end it also,
which may please be noted.
It is into medium term corrective
mode now and it can come out of it, if it moves above 17313---17538 but
it will pick up momentum only above 17860, chances of moving even above 17313
looks bleak at this point of time, furthermore certain important technical
indicators have also turned weak on the daily & weekly chart and most
importantly if it does not give sharp bounce back from here and sustain then it
may turn weak on the monthly chart also this month end, which would be highly
concerning. The indicators are exhibiting tremendous weakness as of now,
therefore further fall looks inevitable and it may drag it down 16650
levels or below. Please note that moving down if it holds 16364 levels
then there is a possibility of a bounce back else down move will continue with
in between short relief rallies, so be alert and careful particularly in the
long trade. The long term uptrend is threatened now and short & medium term
trend is down as of now.
In view
of the above observation safe traders should avoid long trade till correction
completion sign emerges. However, aggressive traders can try long trade near or
within the range 16825---16725 and
then near 16364 but not below it
with a stop loss of 16640 and 16270 respectively. Please trail your
stop loss in case of profitable trade to avoid losses. Since it is in
corrective mode long trade could be a risky affair, therefore one should be very
vigilant and cautious in the long trade. It is suggested to adopt sell on the
rise strategy at appropriate points or sell on the price breakdown with self
defined stop losses for a possible intraday corrective gain till it gets out of
corrective mode. The bias is negative now.
NOTE: - If it opens up with huge
gap up then wait for it to settle down before initiating long position, but
short trade can be attempted on huge gap up if it is near the selling point and
vice versa . Since, it is showing volatility so any type of trade should be
squared off during the day, if you don’t have reasonable profit margin in the
trade. Day squaring off is strongly
suggested in any case.
Disclaimer:-The view expressed here are solely of the author and he is not
at all responsible in any way for the outcome of the trade you enter based on
the above view.
Kindly note that make
your cost your stop loss in favorable trade
and then trail it as the price move up/down to gain maximum profit and avoid
losses. Use support and resistance levels as entry, exit, target and trailing
stop loss points. DO NOT TRADE
WITHOUT STOP LOSS.
Note: Price stated here are of spot market.
Contact me for
strategic guidance to enter and exit trade.
Thanks
Narendra Kumar Surana
Mobile—8240951127/9831313654.
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Thank you for sharing your views.